company car allowance?

clairehi

my OH gets £450 car allowance pcm. he could use the money to lease a car via his company scheme, however he doesnt use a car for work so we take the allowance as cash. he is a higher rate tax payer.

we do run a car, but we own it outright as I paid off the loan a few month ago when we moved house.

if/when we decide to change car, would there be any tax advantage in going for the company car option? business mileage would be virtually zero.

reddevilled

It is quite literally a question of the numbers. Every car varies in whether it is better to have a company car or buy/lease one yourself.

When you come to want to change your car then post your options and people will be able to giv esome more solid advice.

There are pros and cons to each option as well as financial advantages/disadvantages.

Astaroth

I am in a somewhat similiar system where I get a bonus allowance which can be used on a company car or taken as cash. Certainly in my situation the option of a private lease is financially much better than a company car in every car that I have looked at though I do low/ medium mileage - if I were doing much more mileage then the tables would be turned.